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2025 is here, and with it comes the perfect opportunity to set new financial goals! Whether you’re just starting to earn money or have a few years left in your career, keeping a solid budget will be your first step toward taking control of your money. It may seem boring, but once you start, you’ll realize how empowering it can be.
Let’s break it down step by step and help you set your 2025 budget.
1. Consider your 2024 finances
ask yourself:
From this you have to understand where your money went. Apps like Money Manager, YNAB or even a simple Excel sheet can help you track your expenses.
2. Set clear financial goals
Think about what you want to achieve in 2025.
a) short-term goals: Traveling to Goa with friends? Buying a new phone?
B) long-term goals: Saving for higher studies, creating an emergency fund, or investing for the future.
Write down these goals. Keeping them in front of you will keep you motivated.
3. Find out your income and expenses
If you are salaried, it is easy to calculate your monthly income. But don’t forget to include any freelance gigs or side hustles!
Next, list your fixed and variable expenses:
– fixed expenses: Rent, EMI, Insurance Premium.
– variable expenses: Food delivery, shopping, entertainment.
The idea is to see how much you are spending compared to saving. Ideally, aim to save at least 20% of your income.
4. 50/30/20 rule
If budgeting seems overwhelming, this rule could be a lifesaver. This is how it works:
A) 50% of requirements:Rent, groceries, transportation.
B) want 30%: Weekend Plans, Shopping, Subscriptions.
c) 20% savings/investment: Emergency fund, SIP, or mutual fund.
Make changes according to your lifestyle, but try not to waste your savings just on “wants”.
5. Start investing early
Saving is great, but investing is even better. Start small, even if it’s ₹500 per month. You can explore:
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mutual funds: SIPs are suitable for beginners.
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shares: Learn the basics before you dive in.
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digital gold: A good option if you are risk averse.
The sooner you start, the more you’ll benefit from compounding – basically, making your money.
Creating a budget may seem overwhelming at first, but once you get used to it, it becomes second nature to you. And remember, it’s not about being perfect – it’s about progress.
